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records to show his income. See, e.g., Habersham-Bey v.
Commissioner, 78 T.C. at 313-314.
Gleave pleaded guilty to embezzlement and theft of gasoline
from Ashland Oil, Inc., on various occasions between July 1981
and January 1982, activities which by their nature produce
income. Bradford v. Commissioner, 796 F.2d at 308; Petzoldt v.
Commissioner, 92 T.C. at 701-702; McGee v. Commissioner, 61 T.C.
at 260.
Gleave’s overarching explanation is that Kenmore’s payments
to him, or for his benefit, are not income to him because they
are merely repayments of loans by him to Kenmore. We do not
believe the stories of his receiving assertedly nontaxable
sources of capital at convenient times. In addition, we note
that petitioners do not even contend that any of the asserted
transfers by Gleave to Kenmore met any of the criteria for loans,
as distinguished from contributions to capital. For a discussion
of such criteria and case law, see Bittker & Eustice, Federal
Income Taxation of Corporations and Shareholders, par. 4.04, at
4-31 through 4-39 (6th ed. 1994).
Gleave’s implausible explanations, which we reject, are
themselves an indication of fraud. Bahoric v. Commissioner, 363
F.2d at 153-154; Boyett v. Commissioner, 204 F.2d at 208.
We conclude from the foregoing, and we have found, that
respondent has shown by clear and convincing evidence that Gleave
intended to evade his income taxes for each of the years 1980,
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